Merchants Bancorp (MBIN) Shows Promise as it Reaches Oversold Territory

Strong Ranking and Recent Price Drop Make MBIN a Notable Stock to Watch

The DividendRank formula at Dividend Channel evaluates thousands of dividend stocks using a unique approach. This method helps identify stocks that showcase both robust fundamentals and attractive valuations. Currently, Merchants Bancorp (Indiana) (Symbol: MBIN) ranks in the top 25% of this coverage universe, indicating that it is among the most promising stocks worthy of investor attention.

Adding to the intrigue, on Tuesday, MBIN’s stock price dropped to as low as $36.0625 per share, marking entry into oversold territory. This classification uses the Relative Strength Index (RSI), a tool that measures stock momentum on a scale from 0 to 100. A stock is deemed oversold when its RSI falls below 30.

For Merchants Bancorp (Indiana), the current RSI stands at 26.2, notably below the average RSI of 49.1 for the wider dividend stock universe covered by Dividend Channel. A lower stock price may offer dividend investors the chance to achieve a higher yield. Currently, MBIN provides an annualized dividend of 0.36 per share, paid quarterly, resulting in an annual yield of 0.82% based on a recent share price of $43.89.

Investors who are bullish on MBIN may interpret the stock’s 26.2 RSI as a sign that recent heavy selling may be subsiding, presenting potential buy opportunities. To evaluate whether to invest, dividend investors should closely review MBIN’s dividend history.

While dividends can be unpredictable, examining the historical chart below can assist in determining whether the current dividend is likely to be sustained.

Click here to discover 9 other oversold dividend stocks worth considering »

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.